CHICAGO, Oct. 1, 2002 (PRIMEZONE) -- The deadline for purchasers of Baxter International Inc. ("Baxter" or the "Company") (NYSE:BAX) publicly traded securities to move for lead plaintiff in a securities fraud class action recently brought against the Company is rapidly approaching. If you purchased Baxter securities between January 24, 2002 and July 18, 2002, inclusive (the ``Class Period'') and you wish to be a lead plaintiff in the case, you must move to serve as lead plaintiff by filing a motion in the United States District Court for the Northern District of Illinois, Eastern Division by October 7, 2002.
The Complaint alleges that Baxter; Harry M. Jansen Kraemer, Jr., Baxter's Chairman of the Board and Chief Executive Officer; and Brian P. Anderson, Baxter's Chief Financial Officer and Senior Vice President, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market during the Class Period. These alleged misstatements had the effect of artificially inflating the price of Baxter securities.
The complaint alleges that throughout the Class Period Baxter issued press releases representing that its BioScience and Renal divisions would grow their earnings by percentages in the high teens and high single digits, respectively, in 2002. The Complaint further alleges that these, and other, representations were materially false and misleading because they failed to disclose that the Company was experiencing serious problems with its BioScience and Renal divisions. Given these, and other undisclosed problems, defendants' repeated Class Period assurances of continued growth in 2002 were lacking in any reasonable basis when made.
On July 18, 2002, Baxter issued a press release regarding its results for the second quarter of 2002, announcing disappointing sales growth for the BioScience division and a decline in sales for the Renal division. Baxter also announced that it took a $51 million charge in connection with an acquisition and a $70 million impairment charge, reflecting a decline in the value of certain of the Company's investments. In response to the announcement, the price of Baxter common stock plummeted by 36.5%, falling from a closing price of $43.41 per share on July 17, 2002, to a closing price $32 per share the following day. During the Class Period, Baxter insiders sold a total of 435,700 Baxter common shares, reaping gross proceeds in excess of $23.7 million.
Plaintiff seeks to recover damages on behalf of all those who purchased Baxter securities during the Class Period (January 24, 2002 through July 18, 2002). If you purchased Baxter securities the Class Period and either lost money on the transactions or still hold the common stock, you may, if you meet certain other legal requirements, file a motion to serve as a lead plaintiff. You must file your motion no later than October 7, 2002. Any member of the purported class may move the Court to serve as lead plaintiff through Much Shelist or other counsel of their choice, or may choose to do nothing and remain an absent class member.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Baxter.
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca